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Gold retreats as stocks rebound across asia after Fed meeting
[SINGAPORE] Gold declined for the first time in four days after Federal Reserve policy makers reiterated their gradual approach to raising rates, boosting equities and blunting investor demand for a haven.
Bullion for immediate delivery lost as much as 0.4 per cent to US$1,241.08 an ounce and traded at US$1,242.19 at 10:01 am in Singapore, according to Bloomberg generic pricing, as the MSCI Asia Pacific Index advanced for the first time in five days.
Gold has climbed 17 per cent this year, partly due to the scaled back expectations on the number of times US central bankers would increase rates in 2016. The Fed on Wednesday left its benchmark rate unchanged for the third straight meeting since starting a tightening cycle in December, in line with expectations.
Later Thursday, investors will assess a review from the Bank of Japan that's expected to boost stimulus.
"There's a little bit of a sort of risk-on there, which in all things equal, are a little bit negative for the gold market," Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone.